Kyrgyzstan’s law enforcement agencies have been shocked and surprised after finding a large scale illegal cryptocurrency mining farms operating at the heart of a neighbouring FEZ or Free Economic Zone. The video of the illegal operation unit was posted by the State Service for Combating Economic Crimes which is the anti-corruption unit of the Republic of Kyrgyzstan, on Youtube recently.
During the on-site search operation, law enforcement officials found a wide range of highly advanced crypto mining devices that can easily be connected to the internet and electricity. As per the news reported by the local news media outlet, the authorities have already begun their investigation into finding the miners’ origins as well as the source of energy used for mining. As per the news, the official members of the FEZ Bishkek and the local government were involved in operating as well as covering the traces of the illegal crypto mining operations.
The FEZ Bishkek is an economic corridor that is located at the heart of the capital of Kyrgyzstan’s capital. It is meant to promote, create, and help expand the private businesses in the country. This special economic territory, FEZ Bishkek is operational for nearly two decades now as per its official website.
One of the primary reasons why Kyrgyzstan has emerged as a popular place for crypto mining is because of the low energy prices. Many of these big cryptocurrency mining companies have their bases in the country. In 2019, the local energy department officials made an announcement that it would cut off the power supply to nearly 45 crypto mining companies because they collectively consumed more energy than the total three other regions in the country combined.
The parliament of the country has also been discussing in 2020 the need to regulate and tax the crypto mining firms in the bid not only to increase the country’s revenue but also to ensure that the crypto mining firms do not get a free pass at using the country’s resources without contributing back.
It is expected that Kyrgyzstan’s Parliament would soon pass the bill that would bring regulations in place to ensure that the crypto mining firms do not profit at the expense of the country’s interests. The bust of the illegal mining firm in an otherwise thriving economic zone has brought to light the grave need to focus on the crypto-mining sector as well as revisit energy prices for commercial entities, especially crypto-mining farms.